Saregama taps Karan Johar’s Dharma for a majority stake

Saregama India, the music label owned by RP Sanjiv Goenka, is reportedly in talks to acquire a majority stake in Karan Johar’s Dharma Productions.

While the deal is still in its early stages and may not materialize, according to a Livemint report, the development remains unconfirmed.

BT could not independently verify the details.

The talks come as production companies face increasing challenges, such as fluctuating box office numbers and rising demands from actors. Dharma Productions, like many others, has been feeling the pressure and has been reportedly seeking external investments for some time.

Dharma’s recent releases include Kill, Bad Newz, Yodha, and Mr & Mrs Mahi, with the Alia Bhatt-led Jigra set to hit theaters this week. On September 24, Johar expressed concern over skyrocketing actor fees, revealing that some stars had asked for Rs 40 crore to appear in Kill, which equaled the film’s entire budget.

Financially, Dharma Productions posted revenue of Rs 1,044.16 crore in 2022-23, with a profit of Rs 10.69 crore. Saregama, meanwhile, reported Rs 790.3 crore in revenue and a net profit of Rs 185.1 crore. In September 2023, Saregama expanded its presence in the digital space by acquiring a 51.8% stake in Pocket Aces Pictures for Rs 174 crore, with plans to increase its ownership further.

The pandemic and the rise of streaming platforms have significantly shifted consumer behavior, making it harder for production houses to sustain themselves independently.

The story will be updated post comments from Dharma and Saregama. BusinessToday